In: Finance
Private nonprofit four-year colleges charge, on average, $26,470
per year in tuition and fees. The standard deviation is $6,683.
Assume the distribution is normal. Let X be the cost for a randomly
selected college. Round all answers to 4 decimal places where
possible.
a. What is the distribution of X? X ~ N(,)
b. Find the probability that a randomly selected Private nonprofit
four-year college will cost less than 30,818 per year.
c. Find the 74th percentile for this distribution. $ (Round to the
nearest dollar.)
In: Statistics and Probability
In: Finance
In: Finance
The annual sales for Salco, Inc. were $ 4.55 million last year. The firm's end-of-year balance sheet was as follows: Current assets $499,000 Liabilities $1,001,500 Net fixed assets 1504000 Owners' equity 1001500 Total Assets $2,003,000 Total $2,003,000 LOADING.... Salco's income statement for the year was as follows: Sales $4,550,000 Less: Cost of goods sold (3,506,000) Gross profit $1,044,000 Less: Operating expenses (495,000) Net operating income $549,000 Less: Interest expense (101,000) Earnings before taxes $448,000 Less: Taxes (35%) (156,800) Net income $291,200 LOADING.... a. Calculate Salco's total asset turnover, operating profit margin, and operating return on assets. b. Salco plans to renovate one of its plants and the renovation will require an added investment in plant and equipment of $ 1.08 million. The firm will maintain its present debt ratio of 50 percent when financing the new investment and expects sales to remain constant. The operating profit margin will rise to 13.5 percent. What will be the new operating return on assets ratio (i.e., net operating income divided by total assets) for Salco after the plant's renovation? c. Given that the plant renovation in part (b) occurs and Salco's interest expense rises by $ 48 comma 000 per year, what will be the return earned on the common stockholders' investment? Compare this rate of return with that earned before the renovation. Based on this comparison, did the renovation have a favorable effect on the profitability of the firm? a. Calculate Salco's total asset turnover, operating profit margin, and operatin
In: Finance
The following information indicates percentage returns for stocks L and M over a 6-year period:
| year | stock L returns | stock M returns |
| 1 | 14.79% | 20.57% |
| 2 | 14.3% | 18.19% |
| 3 | 16.47% | 16.2% |
| 4 | 17.86% | 14.43% |
| 5 | 17.6% | 12.53% |
| 6 | 19.39% | 10.98% |
In combining [L−M] in a single portfolio, stock M would receive
60% of capital funds. Furthermore, the information below reflects
percentage returns for assets F, G, and H over a 4-year period,
with asset F being the base instrument: Year Asset F Returns Asset
G Returns Asset H Returns
| year | asset F returns | asset G returns | asset H returns |
| 1 | 16.23% | 17.04% | 14.1% |
| 2 | 17.48% | 16.33% | 15.32% |
| 3 | 18.11% | 15.41% | 16.2% |
| 4 | 19.25% | 14.1% | 17.22% |
Using these assets, you have a choice of either combining [F−G] or [F−H] in a single portfolio, on an equally-weighted basis.
Required: Calculate the absolute percentage difference in the
coefficient of variation (CV) between the stock portfolio [L−M] and
the portfolio which outlines the optimal combination of
assets
.
In: Finance
C&P Trading Inc., is entering into a 3-year remodeling and expansion project. Last year, the company paid a dividend of $3.40. It expects zero growth in the next year. In years 2 and 3, and 5% growth is expected, and in year 4, and 15% growth. In year 5 and thereafter, growth should be a constant 10% per year. What is the maximum price per share that an investor who requires a return of 12% should pay for Home Place Hotels common stock?(15') Find the value of the cash dividends at the end of each year. 4' Find the present value of the dividends expected during the initial growth period.3' Find the value of the stock at the end of the initial growth period. 4' Find the value of the stock. (Sum of PV of dividends during initial growth period and PV price of stock at end of growth period) 4'
In: Finance
Today's price for a 1-year, zero-coupon risk-free bond is $983.25, and the price of a 2-year, zero-coupon risk-free bond is $906.46. What should be the price of a risk-free, 2-year annual coupon bond with a coupon rate of 2.0%? Round your answer to the nearest penny (i.e., two decimal places).
In: Finance
Warren Plastic, LLC complete these transactions in year 1 and
year 2. Give general journal entries for them.
date yr
2/20 1 Purchased equipment for 40,000, signed an 8-month note,
7%.
2/28 1 Recorded the month's sales of 200,000, one-eighth cash,
seven-eighths credit.
Sales tax rate is 5.25%
3/20 1 Sent Feb. sales tax to the state.
4/30 1 Borrowed $255,000 on a long-term note, 7% note payable
Annual interest is to be paid each year on 4-30, starting yr.
2.
10/20 1 paid off the note dated 2-20-yr 1
11/30 1 bought inventory at a cost of 12,500. Signed a 3 month
3.25% note.
12/31 1 Accrued warranty expense, estimated at 2% of 2,400,000 of
sales
12/31 1 Accrued Interest on ALL outstanding notes.
2/28 2 Paid off the inventory note at maturity, including
interest.
4/30 2 Paid the annual interest on the 255,000 note.
In: Accounting
Sales $500,000
Distribution to Ragan $30,000
Dividend Income $15,000
COGS $320,000
Business Fine/Penalty $50,000
Long term capital gain $25,000
Tax Exempt Income $10,000
In: Accounting